. "There is room for skepticism after the sluggish start so far with Windows 8, but there is also reason for optimism about the second half of calendar 2013 when several improvements converge," Sherlund wrote.
The more immediate impact, though, is that Windows 8 sales aren't going to be as strong as Sherlund initially projected. The analyst has trimmed his expectations for the fiscal year that ends June 30, believing that revenue will climb 8 percent, to $79.6 billion, instead of his earlier forecast of a 9 percent jump, to $80 billion. He now expects operating income to grow 3 percent, to $28.9 billion, instead of 4 percent, to $29.2 billion.
"We see little near-term good news, but with an expectation for better traction later this year," Sherlund wrote.